Real-Time Payments, Real Concerns: Germans Urge Banks to Fight Fraud

A FICO survey reveals rising fraud concerns among German consumers as real-time payments gain traction, with 63% reporting scam attempts in the past year.

As digital payments gain traction in Germany, consumers are voicing strong concerns about security. A new survey by global analytics software leader FICO highlights a growing demand for robust fraud protection from banks, as real-time payments (RTP) become more widespread alongside escalating fraudulent activity.

Real-Time Payments Gain Popularity but Face Trust Issues

Real-time payments are increasingly common, with 83% of German consumers reporting having used RTP services. However, enthusiasm for the technology appears to be waning. Only 17% of respondents plan to use RTP more frequently in the next 12 months—a notable drop from last year. Furthermore, only 28% of Germans consider RTP to be more secure than credit card payments, significantly below the global average of 51%. While RTP offers convenience, many consumers remain apprehensive about its security.

Rising Fraud Incidents Drive Calls for Bank Intervention

The survey reveals a sharp rise in fraudulent activity impacting German consumers. Nearly two-thirds (63%) reported receiving scam attempts via text, email, or phone in the past year—a 12% increase from 2023. Additionally, 13% experienced financial losses from undelivered goods or services, while 27% said someone close to them had been affected by fraud.

This rising threat has led consumers to demand stronger safeguards from banks. Key measures include improved fraud detection systems (cited by 43% of respondents), more frequent alerts about scams, and added precautions like waiting periods for large transfers.

Consumers Expect Accountability from Banks

German consumers are not only calling for better protection but also clearer compensation policies. According to the survey, 65% believe banks should compensate fraud victims, with 33% saying compensation should always be provided. While 61% of respondents acknowledge personal responsibility for security, many also see banks as liable—14% hold the sending bank accountable, while 13% point to the receiving bank.

“German consumers have developed a heightened awareness of fraud risks and expect their banks to step up,” said Jens Dauner, FICO’s Vice President and Managing Director for DACH & Continental Europe. “To meet these expectations, banks must adopt modern AI-driven fraud detection systems and provide real-time communication.”

Fraud Mismanagement Could Drive Customer Churn

Customer satisfaction plays a critical role in retaining trust. Although 75% of respondents are satisfied with how their bank handles fraud cases, dissatisfaction poses a risk to loyalty. The survey found that 11% of consumers would switch banks if fraud concerns were inadequately addressed, while 60% would file complaints. Additionally, 15% said they would escalate issues to regulatory authorities.

Transparency and responsiveness are particularly crucial. Two out of five customers expressed a willingness to change banks if fraud cases were not resolved transparently or quickly, underscoring the importance of strong problem-resolution protocols.

Banks also face growing demands for flexible communication in fraud alerts. Banking apps have become the preferred channel for 37% of respondents, followed by phone calls (23%) and text messages (18%).

“Consumers have diverse communication preferences, and banks must adapt,” Dauner explained. “Reaching customers in real time through their preferred channels is essential for effective intervention and retaining customer trust.”

Concerns about the security of RTP continue to hinder adoption. One in four respondents believe current security measures are insufficient, signaling an urgent need for banks to enhance protections and rebuild trust.

As digital transactions grow, the survey findings serve as a wake-up call for German banks. Advanced fraud detection systems, transparent policies, and real-time, multichannel communication are essential not only to protect consumers but also to maintain their loyalty.